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Bipartisan Bill to Undo Budget Raid on OC VLF Funds Introduced

SACRAMENTO — State Assemblyman Jose Solorio (D-Anaheim) and Senator Lou Correa (D-Santa Ana), joined by Assemblymembers Diane Harkey (R-Laguna Niquel) and Chris Norby (R-Fullerton), introduced a bill (ABX1 36) today that would overturn a provision in the recently signed budget bill (SB 89) that reneges on a pledge by the state to provide Orange County with $48 million in vehicle license fees.

They issued the following statements:

“Some in the Capitol all of a sudden seemed to think these funds were up for grabs. But that is not the case. The state pledged revenue through vehicle license fees to the County while it pays off its remaining debt from its 1994 bankruptcy in lieu of property taxes. That has not changed. While the County is out of bankruptcy, it’s still paying off refinanced bankruptcy debts.”Assemblyman Jose Solorio

“Claiming that refinancing the bankruptcy debt changes the state’s commitment to Orange County is ludicrous. Orange County would never have jeopardized a funding stream so essential to its overall budget. We need to get that funding back.” Assemblywoman Diane Harkey

“The $48 million state budget cut to Orange County could jeopardize the County’s ability to borrow funds and could unravel the balanced budget approved by the Board of Supervisors just minutes before this budget item came to light. It is only fair that Orange County gets that money back.”Assemblyman Chris Norby

Senator Lou Correa

“Orange County Taxpayers should not have to bear the brunt of this budget grab. I am pleased to join with my fellow members of the Orange County delegation in a united effort to fix this injustice.” Senator Lou Correa

Assemblywoman Harkey is Vice Chair of the Assembly Appropriations Committee. She represents the 73rd Assembly District, which includes the communities of Aliso Viejo, Dana Point, Laguna Hills, Laguna Niguel, Oceanside, San Clemente and San Juan Capistrano.

Assemblyman Norby is Vice Chair of the Assembly Education Committee. He represents the 72nd Assembly District which includes the cities of Anaheim, Brea, Fullerton, La Habra, Orange, Placentia and Yorba Linda.

Senator Correa is Chair of the Senate Elections and Constitutional Amendments Committee. He represents the 34th Senate District which includes the cities of Anaheim, Buena Park, Fullerton, Garden Grove, Santa Ana, Stanton and Westminster.

Assemblyman Jose Solorio is the Chair of the Assembly Insurance Committee and serves on the Assembly Appropriations and Transportation committees. He represents the Sixty-Ninth Assembly District, which includes the cities of Anaheim, Garden Grove, and Santa Ana.

December 6, 1994: Orange County declares Chapter 9 bankruptcy, because the bet went bad. The Treasurer had taken highly leveraged positions using repurchase agreements (repos) and floating rate notes (FRNs). Orange County lost a $2 billion bet. (Details, 1 page, below).http://en.wikipedia.org/wiki/Robert_Citron

1999: The US Senate and House killed the Glass-Steagall separation between investment banking (gambling) and commercial banking (savings checking, business loans, pensions). In 1999 Congress created the casino economy; every OC Congress-member voted to kill Glass-Steagall, (John Campbell was not a Congressman in 1999, blame Chris Cox).
“On the 1999 repeal of Glass-Steagall: Was it not Treason”. http://www.larouchepac.com/node/18627

April 12, 2011: Congresswoman Marcy Kaptur [OH-9] introduces H.R. 1489 which will reestablish Glass-Steagall banking protections. 218 cosponsors are needed to force a vote in the House; there are only 20 cosponsors as of 4th of July, none from Orange County. http://thomas.loc.gov

Our 4 State Legislators should make a statement in support of reinstating Glass-Steagall, and demand that Orange County’s congressional delegation cosponsor HR 1489; and publish the statement in the Register & LA Times.

Fight for Glass-Steagall or resign. Don’t concern yourself over $48 million when California borrowed $11 billion from the Federal Government to pay for unemployment benefits. What we need is a Glass-Steagall resolution or your 4 resignations – this week.
“Localities Face Killer Unpayability of FY 2012 Budgets, as Social Breakdown Proceeds”http://www.larouchepac.com/node/18638